Liquid Sword makes “deeply regrettable” job cuts for “the studio’s long-term sustainability”

NetEase-backed studio Liquid Swords has confirmed a round of cuts, calling the redundancies "deeply regrettable" but necessary for "the studio’s long-term sustainability."

Founded by Avalanche Studios’ co-founder, Christofer Sundberg, Liquid Swords revealed earlier today plans to "reduce its workforce," attributing the cuts to "part of an effort to scale back operations and adapt to current business conditions."

The Swedish studio said it "fully recognizes the difficulty of the situation for its valued team" and said it would be providing all colleagues with "as much support as possible," but stopped short of detailing what that support will entail.

It also did not clarify how many employees had been impacted.

"I promised our employees and shareholders success and to build a studio redefining game development with a small, expert-driven team and a sustainable work model," Sundberg said. "While we achieved much of this, shifting market conditions prevented us from succeeding within our timeframe.

"As a result, we must part ways with talented individuals who have been instrumental in our journey. This is incredibly difficult, but we remain committed to our vision and will continue to work on our IP and first game with a dedicated team."

Liquid Sword says it remains committed to Sundberg’s vision of "simplifying the game development process."

In the first six weeks of 2025 alone, over 900 developers have lost their jobs, with cuts and closures at Freejam, Splash Damage, Piranha Games, Jar of Sparks, as well as 185 jobs cut by Ubisoft. We also reported that ProbablyMonsters initiated another round of layoffs, as well further job cuts at Iron Galaxy and Sumo Group.